Credit Losses on Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2022

Allowance for credit losses on financing receivables

The following table presents the activity of our allowance for credit losses for our accounts receivable portfolio:


	Years Ended December 31,
	2022		2021
	(Dollars in millions)
Balance at beginning of period	$	39	45
Provision for expected losses	4		19
Write-offs charged against the allowance	(22)		(27)
Recoveries collected	3		5
Classified as held for sale (1)	(5)		(3)
Foreign currency exchange rate changes adjustment	—		—
Balance at end of period	$	19	39

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(1) Represents the amounts classified as held for sale related to our planned and completed divestitures. See Note 2—Completed Divestiture of the Latin American Business and Planned Divestiture of European, Middle Eastern and African Business.

The following table presents details of our allowance for credit losses:


	Beginning Balance		Additions	Deductions	Ending Balance
	(Dollars in millions)
2022	$	39	4	(24)	19
2021	45		19	(25)	39
2020(1)	13		41	(9)	45

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(1)On January 1, 2020, we adopted ASU 2016-13 "Measurement of Credit Losses on Financial Instruments" and recognized a cumulative adjustment to our accumulated deficit as of the date of adoption of $3 million, net of a $2 million tax effect. This adjustment is included within "Deductions". Please refer to Note 6—Credit Losses on Financial Instruments for more information.